Is Now An Opportune Moment To Examine Ingersoll Rand Inc. (NYSE:IR)?

Today we're going to take a look at the well-established Ingersoll Rand Inc. (NYSE:IR). The company's stock received a lot of attention from a substantial price increase on the NYSE over the last few months. The recent jump in the share price has meant that the company is trading at close to its 52-week high. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Ingersoll Rand’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Ingersoll Rand

What Is Ingersoll Rand Worth?

According to our valuation model, Ingersoll Rand seems to be fairly priced at around 2.81% above our intrinsic value, which means if you buy Ingersoll Rand today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $77.14, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Ingersoll Rand’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Ingersoll Rand generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 82% over the next couple of years, the future seems bright for Ingersoll Rand. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? IR’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on IR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Ingersoll Rand, you'd also look into what risks it is currently facing. For example - Ingersoll Rand has 1 warning sign we think you should be aware of.

If you are no longer interested in Ingersoll Rand, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.